manufacturing company Regal Beloit reports that it has drawn $255 million on its line of credit, even though it has a strong balance sheet and does not currently intend to use the borrowed proceeds, but believes an abundance of caution regarding its cash position is prudent at this time. Management\u27s Responsibility The responsibility to prepare financial statements on a going concern basis under U.S. GAAP and the International Financial Reporting Standards (IFRS) falls on management. Managers must look forward for a reasonable period of time, defined as 12 months from the financial statement issue date or 12 months from the date financials would have been issued for entities that are neither SEC filers nor conduit bond obligors for debt securities that are traded in a public market. Under ASC 205-40, managers must disclose an uncertainty regarding the ability of the business to continue as a going concern if substantial doubt exists when the conditions and events described above, considered in aggregate, indicate that it is probable that the entity will be unable to meet obligations as they become due
